Nelson Cheng

 

When he moved from Seattle for a technology job in the Bay Area in 2003, Nelson Cheng knew he wanted to make volunteering a significant part of his life. But as newcomer, he didn’t know where to begin. “I wanted to get the lay of the land, and SV2 became a fantastic vehicle to familiarize myself with the philanthropic landscape,” he said. “I wanted to meet with other experienced givers, and it felt great to be able to talk to people about opportunities to make an impact.”

In his earliest involvement, Cheng participated in an SV2 grantmaking round focused on youth enrichment programs. He engaged fully in the due diligence process, visiting organizations that had applied for grants and evaluating programs. “Going through the process of due diligence has a great impact in terms of how you select grantees,” he said, adding that the sample questions he would ask include: “Do I think the organization uses money well? Does it have great leadership? Is this an organization that can be really great?”

To realize the potential of venture philanthropy, Cheng offered to head the SV2 consulting program that pairs partners with relevant expertise alongside nonprofit grantees who have identified needs related to their organizational development. Many partners have experience starting their own companies, designing marketing materials, and leading strategic planning efforts and are eager to advise grantees. “Nonprofits have very similar challenges to real-world businesses - from doing strategic planning to writing a marketing plan,” he noted. “Pairing these SV2 Partners with nonprofits allows them to leverage their tremendous experience and expertise.”

Cheng has found SV2 to be an ideal philanthropic vehicle, especially for people like him who want to be involved with nonprofits beyond just donating money. “It’s hard to find that right balance when donating money. You wonder if it goes into some sort of black hole and then you just get more requests to give the following year,” he said. But with SV2’s model, “there’s a sustained relationship with these nonprofits. You see them grow and face new challenges. That’s exciting."